Integrated Customs

Solution
WCO 2015 Conference
May 07, 2015
Presented by:
Pulak Chakrabarti
President & CEO,
CMCI
Challenges for Customs in the 21st
Century
• Globalization - Increased international trade volumes
and complexities
• Shifting Patterns
 Technological advances and cooperation among
economies
 Just-in-time delivery and low inventory retention
 Multimodal logistics services
 Increased complexity of supply chain networks
• Increased complexity of risks & threats – illicit trade,
illegal passengers, fraud, drug & human trafficking
• Admissibility & Revenue

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Integrated Customs Solution
 Critical Drivers
• Customs Capabilities – IT & Resources
• Trade Capabilities – IT & Resources
• Partnerships & Cooperation
 Customs - Business
 Business-Business
 Customs - Customs
 Customs – Other Participating agencies & entities
• Simplification & Standardization
• Information Sharing & Transparency

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 Capability - Trusted Traders
US-Customs and Trade
Partnership Against Terrorism EU-Authorized Economic
(C-TPAT) Operators (AEO)
• C-TPAT is a voluntary government-trade • Enhance trade facilitation
initiative
• Enhance security through granting
• Establish co-operative relationships recognition to reliable operators
between Government & Trade
• Encourage best practices at all levels in
• Enhance security through granting the international supply chain
recognition to reliable partners
• Strengthen & Improve International
• Strengthen & Improve International Supply Chain
Supply Chain
• Strengthen EU Territory
• Provide highest level of cargo security

• Strengthen US Border Security

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Mutual Recognition Agreement - US & EU
• On May 4, 2012, US and EU signed an agreement on mutual
recognition

 Each party will accept or recognize results of conformity

assessment procedures, produced by the other Party's
conformity assessment bodies or authorities, in assessing
conformity to the importing Party's requirements

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Utility Block – In Action

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 Memoranda of
Understanding/Agreements
C-TPAT AEO
 New Zealand – June 2007  Switzerland – July 2009

 Canada – June 2008  Norway - July 2009

 Jordan – June 2007  Andorra – January 2011

 Japan – June 2009  Japan – May 2011

 Korean – June 2010  USA – May 2012

 EU – May 2012  China – May 2014

 Taiwan * – November 2012

 Israel - June 2014

 Mexico – October 2014

 Singapore - December 2014

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 MR Utility Block - Benefits
• This capability aligned with the Globally Networked Customs (GNC) Utility
Block (UB) concept

o Implemented as part of both C-TPAT and AEO initiatives

• C-TPAT partners are mutually recognized between the US and EU

• AEO partners are mutually recognized between EU and the US

• Expedited admissibility

 Better supply chain visibility for the governments

 Elimination of redundant supply chain security evaluations

 Reduced validation burden for the trade partners

• Established implementation framework for the future Customs

partners negotiating a bilateral agreement

• Significant cost savings

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 Implementation Challenges
• Establishment of collaborative legal and policy framework
needed
 Too many MOUs - slower adoption
• Longer Implementation
 Point to point integration
• Data Standardization
 ICDs are not harmonized

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 Single Window
Consolidated Information
Sharing Capabilities:

• Near Real-time
information exchange

 Improved supply
chain visibility

 Early determination &

resolution of high-risk
cargo

• Agency Specific Message

Set

• Interoperability between
agencies

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Future Vision of Single Window

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 Future Utility Blocks
• Single Window
• Promotion & adoption of C-TPAT/AEO
• Promotion & adoption of Trusted Travellers
• Share Inspection Results – C2C
• Intelligence Gateway – C2C

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Technical Discussions and Q&A

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